Hojatolah Saydi, the newly appointed head of Iran’s Securities and Exchange Organisation (SEO), marked his debut with a strong commitment to the growth and stability of Tehran’s stock market, promising a major expansion in market capitalisation and reforms aimed at enhancing transparency, IBENA reported.

His remarks came during a ceremony on September 17, where the outgoing head of the SEO was officially replaced by Saydi. The stock market reacted positively to the leadership transition, with analysts attributing the day’s market rally to the new appointment, interpreting it as a vote of confidence.

The Tehran Stock Exchange’s main index rose by 16,586 points during the day, closing at 2,084,000. 

In his inaugural speech, Saydi emphasised his long-standing involvement in the capital market and his belief in its vast potential. "The market cap of the Tehran Stock Exchange (TSE) must reach between $300bn and $400bn," he stated, adding that sudden disruptions, like those seen in May 2023, should not be repeated.

Saydi also listed key areas for development, including the expansion of commodity exchanges, improvements in financial reporting and auditing standards, and strengthening corporate governance. Reducing uncertainty and avoiding abrupt policy changes, he said, are essential to maintaining market stability and ensuring sustained growth.

Analysts also noted the influence of statements made the day before by First Vice President Mohammad Reza Aref and Economy Minister Abdolnasser Hemmati, which helped ease market concerns and set the stage for the new boss’ warm reception.

Addressing shareholders' concerns, Saydi called for a significant increase in market capitalisation, which currently stands at around $140bn. He vowed to push for a market cap of up to $400bn, a potential increase of 185%, sparking optimism among investors.

Saydi’s speech resonated well with market participants, particularly his pledge to introduce electricity trading on the energy exchange and to challenge price controls through negotiations with government bodies. He also committed to advocating for the capital market’s interests in the 2025 national budget bill.

He acknowledged the challenges posed by high interest rates and their effect on the stock market, and he reassured investors that he was aware of the major concerns facing market participants. While his promises have been welcomed, some analysts are cautious, pointing out potential conflicts between his plans and the government's broader economic policies.

Price controls, for instance, have been implemented to curb inflation and protect consumers' purchasing power, but their removal could lead to short-term inflationary pressures. These measures, which have hurt companies' profitability, remain a contentious issue, and many are eager to see how his plans will unfold in practice.